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Windows 7 64bit Starting windows \ Safe Mode Failure

Hey guys, i'm trying my best to troubleshoot this computer and to no avail..

I have installed a 2nd copy of win7 on the machine so i do have access to all hard drives and this is ALL of what's happened within the past 5 days-

I kept getting (i use AVG and Malwarebytes) trojan warnings from windows\svchost.exe
I researched this on this forum and ran Combofix and Combofix KILLED this trojan. The rootkit was removed and svchost.exe never respawned again!

Within 12hrs of this fix.. the computer started restarting itself approximately every 16hrs. It did 2-3 restarts and the minidump report states-

Unable to load symbols for ntoskrnl.exe
I do not remember stop code however..

Anyways, i wake up this morning.. to the worst effect so far-

After POST, as soon as the Starting Windows screen appears, before the animated Windows even starts, the screen freezes and shows some video glitches in the very top part of the screen.

This FREEZE is 100% repetitive everytime at the same spot.

I attempt to boot into safe mode..

It loads 3 files, the last file is Hal.DLL After that, safe mode loading file screen freezes with the same video glitches in the top part of the screen.

I have inspected hardware monitor and video card temps\fans, etc..
No hardware faults in temps or voltage. (and with new copy of win7 i'm on, i bootup fine so no hardware issue there)
I then thought maybe my RAID controller was damaged somehow..
My Master drive is Raid Mirror.

But.. that can't be it either because i can freely access all files and execute them on my new win7 install.

I have ran chkdsk /R on my master drive and returned 0 bad sectors, 0 errors.

And last thing i did-

I extracted the system32 folder out of the install.wim file from Win7 64bit install disc, burnt to disc, booted in command prompt in repair computer section, copied ALL .dll files into master drive's system32 folder and it did not help at all! Still freezes at same place...

so i am lost as to what to do now..

I am currently about to run a full scan on this Master drive using AVG from my new win7 install to see if it finds anything but other than that.. something has this master drive corrupted pretty good..

also note-

In windows repair mode-
System Startup Repair fails to find problems.
System Restore found 2 points, 1/11 and 1/7, BOTH of which failed due to unable to extract 2 different files(stuck on different file from each restore point)
There is no System disc image

So.. what in the world am I to do from here?

Reinstalling Windows over itself is not an option as I have an array of software that is setup to my liking and would take about a month to setup all cad based software again..